EGYPT – Egypt has signed two deals worth $430m with Texas-based Noble Energy Inc., to enhance its position as the regional energy hub for the Middle East and North Africa.
The first deal will enable noble energy to pump natural gas through the East Mediterranean Gas Company’s (EMG) pipeline, while the second deal involves the manufacture petroleum products in partnership with Egypt’s Dolphinus Holdings.
The agreements were signed on the sidelines of the Investment for Africa 2019 forum by Egypt’s Minister of Investment Sahar Nasr, and the CEO of the U.S. International Development Finance Corporation (DFC), Adam S Boehler.
Earlier this year, Egypt’s President Abdel Fattah Al-Sisi received Noble Energy’s chairperson and CEO David Stover, to discuss increasing the company’s activities in Egypt.
Previously, in February 2018, Noble Energy had signed two 10-year agreements worth $15bn to export Israeli natural gas to Egypt.
The agreement between Delek Drilling, Noble Energy, and Dolphinus Holdings will supply Egypt with 7bn cubic metres of gas annually.
Also, the trio has announced a deal to acquire 39% stake in the natural gas pipeline connecting Egypt and Israel.
Delek Drilling and Noble Energy, the operators of Israel’s largest natural gas fields Tamar and Leviathan, and the Egyptian company Dolphinus Holdings, have also established a joint venture under the name EMED.
Media reports in Egypt state that EMED will buy the stake from East Mediterranean Gas Company, the owner of the Arish–Ashkelon pipeline, for about US$518 millon.
Egypt aims to turn into a regional gas hub, through exploiting the country’s LNG plants in Idku and Damietta and through importing gas from Israel and Cyprus for re-export to other markets.